Question 21 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 21 Chapter 8 of +2- Part

Question 21 Chapter 8 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

 21. (Oversubscription/Prorata Allotment) Jaideep applied for 10,000 shares of Rs. 10 each in Simran Company. The amount being payable Rs. 2 on application Rs. 4 on allotment, Rs. 3 on first call and Rs. 1 on final call. He was allotted 8,000 shares. Excess money was retained for allotment . Pass necessary Journal entries.

The solution of Question 21 Chapter 8 of +2 Part-1: –

Journal
Date   Particulars
L.F. Debit Credit
a) Bank A/c (10,000X2) Dr.   20,000  
  To Share Application A/c       20,000
  (Being application money received on)        
           
b) Share Application A/c Dr.   20,000  
  To Share capital A/c       16,000
  To Share allotment A/c       4,000
  (Being 8,000 shares allotted & excess money refunded )        
           
c) Share Allotment A/c (22,000X45) Dr.   32,000  
  To Share capital A/c       32,000
  (Being allotment money due)        
           
d) Bank A/c (32,000 – 4,000) Dr.   28,000  
  To Share allotment A/c       28,000
  (Being allotment money received in full)        
           
e) Share first & final Call A/c Dr.   24,000  
  To Share capital A/c       24,000
  (Being final call money due on 22,000 share @ 30 as per shares)        
           
f) Bank A/c Dr.   24,000  
  To Share final Call A/c       24,000
  (Being balance of first call money received in full)        
           
g) Share final call A/c Dr.   8,000  
  To Share capital A/c       8,000
  (Being final call money due on)        
           
h) Bank A/c Dr.   8,000  
  To Share final Call A/c       8,000
  (Being balance of final call money received in full)        
         
 
  Equity & Liability Note no/.
Current year
i) Equity & Liability    
  12 % Preference Share Capital   40,00,000
       
  Total   40,00,000
 
  Equity & Liability Note no/.
Current year
i) Current Assets    
  Cash at Bank   40,00,000
       
  Total   40,00,000

Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 21 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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